Which of the following is not a subject matter of micro economics?
Options
ABehaviour of firms
BLocation of industry
CConsumer behaviour
DForeign exchange rate
For any discrepancies in this question, email contact@cadada.in
Introduction to Business EconomicsPYQ Jun 23Question 675 of 209
All Questions Correct Answer
✅ Option d — Foreign exchange rate
All Options:
- ABehaviour of firms
- BLocation of industry
- CConsumer behaviour
- DForeign exchange rate
Detailed Solution & Explanation
• Microeconomics focuses on the economic behavior of individual units, such as households, firms, and individual markets. It examines how these units make decisions and interact.
• Let's analyze the options:
• (A) Behaviour of firms: This is a core topic in microeconomics, studying how firms make production, pricing, and investment decisions to maximize profits.
• (B) Location of industry: While it might seem broad, the location decisions of individual firms or industries are often analyzed using microeconomic principles, considering factors like costs, demand, and competition in specific areas. It falls under the study of individual firm or industry behavior.
• (C) Consumer behaviour: This is a fundamental aspect of microeconomics, exploring how individual consumers make choices about what to buy, given their income and preferences, to maximize utility.
• (D) Foreign exchange rate: This refers to the rate at which one currency can be exchanged for another. The determination of foreign exchange rates is influenced by macroeconomic factors like national interest rates, inflation, trade balances, and government policies, affecting the entire economy. Therefore, it is a subject matter of macroeconomics, not microeconomics.
• In summary, microeconomics deals with the 'small' parts of the economy, while macroeconomics deals with the 'large' or aggregate aspects. Foreign exchange rates are an aggregate phenomenon.
About This Chapter: Introduction to Business Economics
Paper
Paper 4: Business Economics
Weightage
5%
Key Topics
Meaning, Scope, Price Mechanism
This chapter lays the groundwork for understanding Business Economics as a discipline. It covers the meaning, scope, and nature of economics — including key distinctions like Microeconomics vs Macroeconomics, Positive vs Normative economics, and the fundamental economic problem of scarcity. Students learn how businesses use economic principles for decision-making in a competitive marketplace.
View Official ICAI SyllabusExam Strategy Tip
Focus on definitions and distinctions between concepts. Questions often test whether you understand the difference between Micro and Macro, or Positive and Normative statements.
Related Comparison Tables
More Questions from Introduction to Business Economics
A study of how increases in the corporate income tax rate will affect the nation unemployment rate is an example of
In a ______ the producer is free to set up any type of firms produce goods and services of his choice.
In the beginning the word economics was
In Economics, we use the term scarcity to mean;
In a free market economy, allocation of resources is determined by
If there is no central planning authority to make the fundamental economic decisions and thus to allocate productive resources, how can then free enterprise or capitalist economy solve its central problems?
Ready to Master Introduction to Business Economics?
Practice all 209 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.
Start Practicing — It's Free